See our latest analysis for Honeywell International.
Honeywell’s share price may have drifted lower in recent months, but its 1-year total shareholder return remains in positive territory. This reflects the underlying strength of its business amid a patchy year for industrial stocks. The dip over the last quarter hints at cautious sentiment. However, the long-term trend shows that investors willing to ride out volatility have still seen meaningful gains.
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Given Honeywell's modest share price movements despite decent financial growth, is the market overlooking value or simply factoring in all its future prospects? Is this a hidden buying opportunity, or are expectations already included?
Most Popular Narrative: 19% Undervalued
According to the most popular narrative, Honeywell's fair value is notably higher than its recent closing price. This sets up a compelling scenario for value-driven investors seeking upside potential.
Honeywell's decision to separate into three independent companies (Automation, Aerospace, and Advanced Materials) could unlock significant value and better position each entity for long-term growth, impacting revenue and margins positively. The acquisition of Sundyne and strategic bolt-on acquisitions are expected to enhance Honeywell's business profile, increasing both organic growth and segment margins by expanding their portfolio of solutions.
Curious what bold financial moves and future-focused forecasts are fueling this valuation? The narrative’s projections include some major shifts and surprising leaps. Find out which daring assumptions are driving the fair value above current levels.
Result: Fair Value of $248.54 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, global economic uncertainty and challenges in integrating new acquisitions could disrupt Honeywell’s growth outlook, testing both revenue stability and profit expectations.
Find out about the key risks to this Honeywell International narrative.
Build Your Own Honeywell International Narrative
If the numbers or story above don’t quite match your perspective, you’re free to dig into the details yourself and craft a narrative in just a few minutes. Do it your way.
A great starting point for your Honeywell International research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Honeywell International might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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